How Relevance & Relationships Can Drive Revenue

The famous philosopher George Berkely asked, “If a tree falls in a forest and no one is around to hear it, does it make a sound?" Anyone who has ever stared into their half-full restaurant has asked themselves a version of this same question.  While producing a consistently high-quality guest experience requires an immense amount of skill and diligence, you still have to bring people in the door. While outstanding food and beverage offerings can certainly create grassroots buzz, a marketing strategy is often needed to attract a wider audience and build consistent business.

With the ongoing shift in how people consume information, restaurant marketing continues to evolve as well. It can seem as if there is a new solution or channel every day.  However, the core principle is always the same—the goal of all marketing is to carve a space in someone’s heart and mind, and find consistent ways to nurture that relationship. Increasing relevance and building relationships are two key steps towards the ultimate goal of driving revenue.

Relevance

While top line revenue is the ultimate goal, it shouldn’t be the only measure of success for a single marketing campaign. Before you make a sale, you first have to get people in the door—which is why relevance is often the first step towards revenue.

To achieve relevance means you are top of mind amongst your target audience the next time they decide to go out or order in. Staying relevant means having something to talk about that resonates in your community or connects to what’s trending in the broader cultural landscape.

As an example, Curio is a neighborhood bar and restaurant in San Francisco known for craveable food, a great cocktail program, and live music. It recently offered a month-long, three-course tasting menu featuring Fernet Branca. Such an idea may not spark interest in many parts of the country, but San Francisco has a particular love affair with the digestif, and is purported to consume 35% of all Fernet in the USA within city limits. Restaurant and bar industry workers are especially fond of it, so much so, that it’s often considered a “bartender’s handshake.” By partnering with their local Branca USA vendor, Curio was able to promote a special event at the restaurant bringing in not only over 50 local bartenders and industry workers, but also a local spirits writer. The event not only promoted the special menu, but also served to establish the venue’s reputation as a serious bar and restaurant with creative cocktails and a chef-driven menu, while reinforcing their quirky personality.

Social media is a fantastic tool to show relevance, providing a forum for bars and restaurants to share ideas, drinks, and dishes that are on trend and part of the larger cultural conversation. This could mean showcasing trending items like an espresso martini, or a hot new ingredient like ube, to stimulate interest. It could also be taking an important stance on an issue or championing something special, like all the natural wine bars now popping up, and attracting people by affiliation. Relevance should speak to what your guests are looking for.

While it can be difficult to prioritize building brand awareness within a limited marketing budget, relevance is key to staying top of mind. You want to be the first place your target guest thinks of when the next occasion arises—and this means staying relevant. This requires: clear messaging, repetition, a distinct personality, and a strong value proposition that will resonate with your current and potential guests.

Relationships

Many marketing initiatives aim to bring someone in once, like a special Valentine’s menu, hoping the guest will have a good experience and want to return. In contrast, relationship marketing is designed to build brand loyalty, and create fans that come back time and again.

Loyalty clubs are a great way to achieve this. Dunkin’ recently introduced a signature Brownie Batter Latte available only to rewards members. This is the first time the company has introduced a drink exclusive to the loyalty club, and only available through the Dunkin’ app. Based on the chain’s seasonal Brownie Batter Donut, the latte not only reinforces the product LTO, but also offers members different ways to experience the flavors. By limiting the drink to members only, customers feel they are receiving a special experience from the brand, which helps foster loyalty. The limited time nature of the offer serves to bring people in before it expires; and if they like it, they may come in multiple times. Dunkin’ also retooled their loyalty program to create a tiered structure rewarding high-frequency guests, thus deepening the relationship and encouraging more frequent visits.

This doesn’t mean you need a loyalty club or a proprietary app to build relationships. Creating a small, but dedicated, following with a promotion/event/special that appeals to a specific audience is another way to create brand fans.

Duende, an independent Spanish restaurant in Oakland, Calif., has built a regular following for their bi-monthly flamenco performances. Passionate about the arts, the restaurant partners with local musicians and dancers to offer special evenings that combine a fixed-price meal with live flamenco music and dance performances. These events regularly sell-out, with many guests returning multiple times. The flamenco performance appeals to a niche audience, who over time have developed a lasting relationship with the restaurant.

The Sweet Spot: At the Crossroads of Relevance, Relationships and Revenue

While the goal of any marketing plan is ultimately to drive revenue, raising relevance and building relationships is how this is accomplished. Marketing magic happens when you’re able to increase brand awareness and grow a dedicated following that impacts your business's bottom line.

Everyone knows someone who only pops into their feed or their lives to talk about how great they are or because they want something from you.  Don’t be the restaurant or bar that only shows up in your guest’s feed because you want something. Instead, be the friend who always has a great idea for a good time, who cares about the same things you do, and is thoughtful in nurturing your friendship.

 

Leith Steel has over 20 years of experience in the culinary arts, media relations, and brand strategy. Steel is a Senior Strategist and Head of Insights at Carbonate, responsible for spearheading the agency's annual Hospitality Trends Report. 

Plan to Attend the Annual Bar & Restaurant Expo

To learn about the latest trends, issues and hot topics, and to experience and taste the best products within the bar, restaurant and hospitality industry, plan to attend or participate in the annual Bar & Restaurant Expo. Visit BarandRestaurantExpo.com for details.

To book your sponsorship or exhibit space at the next Bar & Restaurant Expo 2024, contact:

Veronica Gonnello ​(for companies A to G)​ e: [email protected]​ p: 212-895-8244

Tim Schultz​ (for companies H to Q) ​e: [email protected]​ p: 917-258-8589

Fadi Alsayegh ​(for companies R to Z)​ e: [email protected] p: 917-258-5174​

Also, be sure to follow Bar & Restaurant on Facebook and Instagram for all the latest industry news and trends.